forwardlogoa05.jpg
NEWS RELEASE

FORWARD AIR CORPORATION REPORTS SECOND QUARTER 2020 RESULTS
Reports profitable income from operations and positive operating and free cash flow
Business rebounding from April impact of COVID-19,
with June continuing operations revenue and operating income above last year’s levels

GREENEVILLE, Tenn.- (BUSINESS WIRE) - July 30, 2020 - Forward Air Corporation (NASDAQ:FWRD) today reported financial results for the three and six months ended June 30, 2020 as presented in the tables below on a continuing operations basis (Pool Distribution is being reported as a discontinued operation).
Tom Schmitt, Chairman, President and CEO, commenting on the Company's second quarter results said, "I could not be more proud of our teams for stepping up in a huge way for our customers, bringing them back up from April lows in the toughest circumstances with record service levels.  By June our top and bottom lines were ahead of last year on a continuing operations basis and were comparable to last year when adjusted for one-time items."

Continuing Operations
 
Three months ended
(in thousands, except per share data)
 
June 30, 2020 1
 
June 30, 2019
 
Change
 
Percent Change
Operating revenue
 
$
281,678

 
$
302,887

 
$
(21,209
)
 
(7.0
)%
Income from operations
 
$
13,914

 
$
29,070

 
$
(15,156
)
 
(52.1
)%
Operating margin
 
4.9
%
 
9.6
%
 
(470) bps
Net income
 
$
9,225

 
$
21,244

 
$
(12,019
)
 
(56.6
)%
Net income per diluted share
 
$
0.33

 
$
0.74

 
$
(0.41
)
 
(55.4
)%
Cash provided by operating activities
 
$
29,101

 
$
25,715

 
$
3,386

 
13.2
 %
 
 
 
 
 
 
 
 
 
Non-GAAP Financial Measures: 2
 
 
 
 
 
 
 
 
EBITDA
 
$
23,327

 
$
38,296

 
$
(14,969
)
 
(39.1
)%
Free cash flow
 
$
17,806

 
$
14,436

 
$
3,370

 
23.3
 %
1 Results for the three months ended June 30, 2020 include several non-recurring items including a $2.1 million gain from changes in fair value on an earn-out due to the timing of expected new business wins, partially offset by $1.0 million of severance and $0.7 million in reserves for customers negatively impacted by COVID-19.
2 EBITDA and free cash flow are non-GAAP financial measures and reconciliations of these non-GAAP financial measures are provided in the below financial tables.

Michael J. Morris, CFO, commenting on the Company’s third quarter 2020 guidance for continuing operations said “We expect third quarter year-on-year revenue growth to be 1% to 5% and net income per diluted share to be between $0.40 and $0.44.”

1


On July 21, 2020, our Board of Directors declared a quarterly cash dividend of $0.18 per share of common stock. The dividend is payable to shareholders of record at the close of business on August 20, 2020 and is expected to be paid on September 9, 2020. This quarterly dividend is made pursuant to a cash dividend policy approved by the Board of Directors, which anticipates a total annual dividend of $0.72 for the full year 2020, payable in quarterly increments of $0.18 per share of common stock. The actual declaration of future cash dividends, and the establishment of record and payment dates, is subject to final determination by the Board of Directors each quarter after its review of the Company’s financial performance and position.

On April 23, 2020, the Board approved a strategy to divest the Pool Distribution business (“Pool”). Accordingly, the results of operations and cash flows for Pool have been presented as discontinued operations and have been excluded from continuing operations in this release for all periods presented.  In addition, Pool assets and liabilities are reflected as “held for sale” on the Consolidated Balance Sheets in this release. For more information regarding Pool discontinued operations, please see the Company’s Form 10-Q for the quarter ended June 30, 2020 expected to be filed with the Securities and Exchange Commission (the “SEC”) on July 31, 2020.

Review of Financial Results
Forward Air will hold a conference call to discuss second quarter 2020 results on Friday, July 31, 2020 at 9:00 a.m. EDT. The Company’s conference call will be available online on the Investor Relations portion of the Company’s website at www.forwardaircorp.com, where investors can easily find or navigate to pertinent information about us, or by dialing (844) 767-5679, Access Code: 147112. A replay of the conference call will be available on the Investor Relations portion of the Company’s website at www.forwardaircorp.com beginning shortly after completion of the live call.

About Forward Air Corporation
Forward Air keeps your business moving forward by providing services within three business segments: Expedited Freight (provides expedited regional, inter-regional and national LTL services, including local pick-up and delivery, final mile, truckload, shipment consolidation and deconsolidation, warehousing, customs brokerage and other handling); Intermodal (provides first-and last-mile high-value drayage services both to and from seaports and railheads, dedicated contract and Container Freight Station warehouse and handling services); and Pool Distribution (provides high frequency handling and distribution of time sensitive product to numerous destinations within a specific geographic region). For more information, visit our website at www.forwardaircorp.com.

2

Forward Air Corporation
Consolidated Statements of Comprehensive Income
(Unaudited, in thousands, except per share data)
 
 
 
 
 
 
 
 
 
Three months ended
 
Six months ended
 
June 30,
2020
 
June 30,
2019
 
June 30,
2020
 
June 30,
2019
 


 
(As Adjusted)
 


 
(As Adjusted)
Operating revenue:
 
 
 
 

 
 
Expedited Freight
$
235,658

 
$
253,286

 
$
489,287

 
$
478,944

Intermodal
46,428

 
50,539

 
98,888

 
104,654

Eliminations and other operations
(408
)
 
(938
)
 
(940
)
 
(1,750
)
Operating revenue
281,678

 
302,887

 
587,235

 
581,848

Operating expenses:
 

 
 

 
 

 
 

Purchased transportation
142,069

 
143,436

 
292,667

 
275,987

Salaries, wages and employee benefits
63,772

 
63,841

 
133,331

 
123,798

Operating leases
17,387

 
16,124

 
35,271

 
31,001

Depreciation and amortization
9,413

 
9,227

 
18,747

 
18,515

Insurance and claims
7,722

 
11,757

 
17,766

 
19,745

Fuel expense
2,519

 
4,467

 
6,532

 
8,582

Other operating expenses
24,882

 
24,965

 
53,234

 
51,448

Total operating expenses
267,764

 
273,817

 
557,548

 
529,076

Income (loss) from continuing operations:
 
 
 
 
 
 
 
Expedited Freight
11,753

 
28,187

 
26,933

 
49,093

Intermodal
4,413

 
5,245

 
8,126

 
11,426

Other operations
(2,252
)
 
(4,362
)
 
(5,372
)
 
(7,747
)
Income from continuing operations
13,914

 
29,070

 
29,687

 
52,772

Other expense:
 

 
 

 
 

 
 

Interest expense
(1,198
)
 
(581
)
 
(2,051
)
 
(1,156
)
Other, net
—

 
(1
)
 
—

 
(2
)
Total other expense
(1,198
)
 
(582
)
 
(2,051
)
 
(1,158
)
Income before income taxes
12,716

 
28,488

 
27,636

 
51,614

Income tax expense
3,491

 
7,244

 
6,995

 
12,683

Net income from continuing operations
9,225

 
21,244

 
20,641

 
38,931

(Loss) income from discontinued operations, net of tax
(6,071
)
 
1,086

 
(9,112
)
 
1,806

Net income and comprehensive income
$
3,154

 
$
22,330

 
$
11,529

 
$
40,737

 
 
 
 
 
 
 
 
Net income per share:
 
 
 
 
 
 
 
Basic net income (loss) per share:
 
 
 
 
 
 
 
Continuing operations
$
0.33

 
$
0.74

 
$
0.72

 
$
1.35

Discontinued operations
(0.22
)
 
0.04

 
(0.31
)
 
0.07

Net income per share
$
0.11

 
$
0.78

 
$
0.41

 
$
1.42

 
 
 
 
 
 
 
 
Diluted net income (loss) per share:
 
 
 
 
 
 
 
Continuing operations
$
0.33

 
$
0.74

 
$
0.72

 
$
1.35

Discontinued operations
(0.22
)
 
0.04

 
(0.32
)
 
0.06

Net income per share
$
0.11

 
$
0.78

 
$
0.40

 
$
1.41

Dividends per share:
$
0.18

 
$
0.18

 
$
0.36

 
$
0.36


3

Expedited Freight Segment Information
(In millions)
(Unaudited)

 
 
 
 
 
 
 
 
 
 
 

Three months ended

June 30,
 
Percent of
 
June 30,
 
Percent of
 

 
Percent
 
2020 1
 
Revenue
 
2019
 
Revenue
 
Change
 
Change


 

 
(As Adjusted)
 

 

 

Operating revenue:


 


 


 


 

 

Network 2
$
134.2

 
56.9
%
 
$
172.5

 
68.1
%
 
$
(38.3
)
 
(22.2
)%
Truckload
41.9

 
17.8

 
48.6

 
19.2

 
(6.7
)
 
(13.8
)
Final Mile
53.4

 
22.7

 
25.0

 
9.9

 
28.4

 
113.6

Other
6.2

 
2.6

 
7.2

 
2.8

 
(1.0
)
 
(13.9
)
Total operating revenue
235.7

 
100.0

 
253.3

 
100.0

 
(17.6
)
 
(6.9
)


 

 

 

 

 

Operating expenses:

 

 

 

 

 

Purchased transportation
127.5

 
54.1

 
125.8

 
49.7

 
1.7

 
1.4

Salaries, wages and employee benefits
50.5

 
21.4

 
50.9

 
20.1

 
(0.4
)
 
(0.8
)
Operating leases
13.3

 
5.6

 
12.1

 
4.8

 
1.2

 
9.9

Depreciation and amortization
6.7

 
2.8

 
7.5

 
3.0

 
(0.8
)
 
(10.7
)
Insurance and claims
5.7

 
2.4

 
6.6

 
2.6

 
(0.9
)
 
(13.6
)
Fuel expense
1.4

 
0.6

 
2.7

 
1.1

 
(1.3
)
 
(48.1
)
Other operating expenses
18.8

 
8.0

 
19.5

 
7.7

 
(0.7
)
 
(3.6
)
Total operating expenses
223.9

 
95.0

 
225.1

 
88.9

 
(1.2
)
 
(0.5
)
Income from operations
$
11.8

 
5.0
%
 
$
28.2

 
11.1
%
 
$
(16.4
)
 
(58.2
)%
 
 
 
 
 
 
 
 
 
 
 
 
1 Includes revenues and operating expenses from the acquisition of FSA and Linn Star, which were acquired in April 2019 and January 2020, respectively. FSA results are partially included in the prior period. Linn Star results are not included in the prior period.
2 Network revenue is comprised of all revenue, including linehaul, pickup and/or delivery, and fuel surcharge revenue, excluding accessorial, Truckload and Final Mile revenue.



4

Expedited Freight Operating Statistics
 
 
 
Three months ended
 
June 30,
 
June 30,
 
Percent
 
2020
 
2019
 
Change
 

 
(As Adjusted)
 

 
 
 
 
 
 
Business days
64

 
64

 
—
 %
 
 
 
 
 
 
Tonnage 1,2
 
 
 
 
 
    Total pounds
522,031

 
626,748

 
(16.7
)
    Pounds per day
8,157

 
9,793

 
(16.7
)
 
 
 
 
 
 
Shipments 1,2
 
 
 
 
 
    Total shipments
963

 
1,014

 
(5.0
)
    Shipments per day
15.0

 
15.8

 
(5.0
)

 
 
 
 
 
Weight per shipment
542

 
618

 
(12.3
)

 
 
 
 
 
Revenue per hundredweight 3
$
26.32

 
$
27.39

 
(3.9
)
Revenue per hundredweight, ex fuel 3
$
23.09

 
$
22.91

 
0.8


 
 
 
 
 
Revenue per shipment 3
$
139

 
$
171

 
(18.7
)
Revenue per shipment, ex fuel 3
$
122

 
$
144

 
(15.3
)

 
 
 
 
 
Network revenue from door-to-door shipments as a percentage of network revenue 3,4
49.9
%
 
39.9
%
 
25.1

Network gross margin 5
50.6
%
 
55.8
%
 
(9.3
)%
 
 
 
 
 
 
1 In thousands
2 Excludes accessorial, full Truckload and Final Mile products
3 Includes intercompany revenue between the Network and Truckload revenue streams
4 Door-to-door shipments include all shipments with a pickup and/or delivery
5 Network revenue less Network purchased transportation as a percentage of Network revenue


5

Intermodal Segment Information
(In millions)
(Unaudited)
 
 
 
 
 
 
 
 
 
 
 
 

Three months ended

June 30,
 
Percent of
 
June 30,
 
Percent of
 

 
Percent
 
2020 1
 
Revenue
 
2019
 
Revenue
 
Change
 
Change
Operating revenue
$
46.4

 
100.0
%
 
$
50.5

 
100.0
%
 
$
(4.1
)
 
(8.1
)%

 
 
 
 
 
 
 
 
 
 
 
Operating expenses:
 
 
 
 
 
 
 
 
 
 
 
Purchased transportation
14.9

 
32.1

 
18.2

 
36.0

 
(3.3
)
 
(18.1
)
Salaries, wages and employee benefits
11.7

 
25.2

 
12.4

 
24.6

 
(0.7
)
 
(5.6
)
Operating leases
4.0

 
8.6

 
4.0

 
7.9

 
—

 
—

Depreciation and amortization
2.6

 
5.6

 
1.8

 
3.6

 
0.8

 
44.4

Insurance and claims
1.8

 
3.9

 
1.7

 
3.4

 
0.1

 
5.9

Fuel expense
1.1

 
2.4

 
1.7

 
3.4

 
(0.6
)
 
(35.3
)
Other operating expenses
5.9

 
12.7

 
5.5

 
10.9

 
0.4

 
7.3

Total operating expenses
42.0

 
90.5

 
45.3

 
89.7

 
(3.3
)
 
(7.3
)
Income from operations
$
4.4

 
9.5
%
 
$
5.2

 
10.3
%
 
$
(0.8
)
 
(15.4
)%
 
 
 
 
 
 
 
 
 
 
 
 
1 Includes revenues and operating expenses from the acquisition of OST, which was acquired in July 2019 (and is not included in the prior period).


Intermodal Operating Statistics
 
 

Three months ended

June 30,
 
June 30,
 
Percent

2020
 
2019
 
Change


 

 

Drayage shipments
68,974

 
76,074

 
(9.3
)%
Drayage revenue per shipment
$
556

 
$
571

 
(2.6
)
Number of locations
24

 
21

 
14.3
 %


6

Forward Air Corporation
Consolidated Balance Sheets
(In thousands)
(Unaudited)
 
June 30,
2020
 
December 31, 2019
Assets
 
 
 
Current assets:
 
 
 
Cash and cash equivalents
$
80,916

 
$
64,749

Accounts receivable, net
130,759

 
136,214

Other current assets
23,745

 
20,403

Current assets held for sale
11,871

 
14,952

Total current assets
247,291

 
236,318

 
 
 
 
Property and equipment
381,834

 
373,571

Less accumulated depreciation and amortization
187,239

 
180,815

Total property and equipment, net
194,595

 
192,756

Operating lease right-of-use assets
123,925

 
105,170

Goodwill and other acquired intangibles:
 

 
 

Goodwill
240,933

 
215,699

Other acquired intangibles, net of accumulated amortization
148,452

 
124,857

Total goodwill and other acquired intangibles, net
389,385

 
340,556

Other assets
42,710

 
39,374

Noncurrent assets held for sale
74,593

 
76,704

Total assets
$
1,072,499

 
$
990,878

 
 
 
 
Liabilities and Shareholders’ Equity
 

 
 

Current liabilities:
 

 
 

Accounts payable
$
27,682

 
$
25,411

Accrued expenses
48,041

 
44,154

Other current liabilities
3,784

 
5,318

Current portion of debt and finance lease obligations
1,445

 
1,421

Current portion of operating lease obligations
42,108

 
35,886

Current liabilities held for sale
23,792

 
24,974

Total current liabilities
146,852

 
137,164

 
 
 
 
Debt and finance lease obligations, less current portion
136,549

 
72,249

Operating lease obligations, less current portion
82,404

 
69,678

Other long-term liabilities
58,194

 
56,448

Deferred income taxes
45,883

 
41,214

Noncurrent liabilities held for sale
36,325

 
36,943

 
 

 
 

Shareholders’ equity:
 

 
 

Common stock
277

 
279

Additional paid-in capital
233,086

 
226,869

Retained earnings
332,929

 
350,034

Total shareholders’ equity
566,292

 
577,182

Total liabilities and shareholders’ equity
$
1,072,499

 
$
990,878


7

Forward Air Corporation
Consolidated Statements of Cash Flows
(In thousands)
(Unaudited)
 
Three months ended

June 30, 2020
 
June 30, 2019
Operating activities:


 


Net income from continuing operations
$
9,225

 
$
21,244

Adjustments to reconcile net income of continuing operations to net cash provided by operating activities of continuing operations
 
 
 
Depreciation and amortization
9,413

 
9,227

Change in fair value of earn-out liability
(2,108
)
 
—

Share-based compensation
2,429

 
3,045

Loss (gain) on disposal of property and equipment, net
75

 
(137
)
Provision for loss on receivables
887

 
2

Provision for revenue adjustments
745

 
738

Deferred income tax expense
3,443

 
2,367

Changes in operating assets and liabilities
 
 
 
Accounts receivable
(61
)
 
(6,566
)
Prepaid expenses and other current assets
(493
)
 
(7,371
)
Income taxes
(1,962
)
 
(6,599
)
Accounts payable and accrued expenses
7,508

 
9,765

Net cash provided by operating activities of continuing operations
29,101

 
25,715

 
 
 
 
Investing activities:
 
 
 
Proceeds from disposal of property and equipment
268

 
624

Purchases of property and equipment
(11,563
)
 
(11,903
)
Acquisition of business, net of cash acquired
—

 
(27,000
)
Other
—

 
6

Net cash used in investing activities of continuing operations
(11,295
)
 
(38,273
)
 
 
 
 
Financing activities:
 
 
 
Payments of finance lease obligations
(340
)
 
(69
)
Proceeds from senior credit facility
—

 
10,000

Payments on earn-out liability
(5,284
)
 
—

Proceeds from exercise of stock options
—

 
448

Payments of cash dividends
(5,037
)
 
(5,144
)
Repurchase of common stock (repurchase program)
—

 
(24,436
)
Proceeds from common stock issued under employee stock purchase plan
294

 
261

Cash settlement of share-based awards for tax withholdings
(614
)
 
(49
)
(Distributions to) contributions from subsidiary
(3,154
)
 
4,159

Net cash used in financing activities from continuing operations
(14,135
)
 
(14,830
)
Net increase (decrease) in cash of continuing operations
3,671

 
(27,388
)
 
 
 
 
Cash from discontinued operations:
 
 
 
Cash (used in) provided by operating activities of discontinued operations, net
(3,010
)
 
4,523

Cash used in investing activities of discontinued operations, net
(144
)
 
(364
)
Cash provided by (used in) financing activities of discontinued operations, net
3,154

 
(4,159
)
Net increase (decrease) in cash
3,671

 
(27,388
)
Cash at beginning of period of continuing operations
77,245

 
42,165

Cash at beginning of period of discontinued operations/held for sale
—

 
—

Net increase (decrease) in cash
3,671

 
(27,388
)
Less: cash at end of period of discontinued operations/held for sale
—

 
—

Cash at end of period of continuing operations
$
80,916

 
$
14,777


8

Forward Air Corporation
Consolidated Statements of Cash Flows
(In thousands)
(Unaudited)
 
Six months ended
 
June 30, 2020
 
June 30, 2019
Operating activities:
 
 
 
Net income from continuing operations
$
20,641

 
$
38,931

Adjustments to reconcile net income of continuing operations to net cash provided by operating activities of continuing operations
 
 
 
Depreciation and amortization
18,747

 
18,515

Change in fair value of earn-out liability
(2,702
)
 
—

Share-based compensation
5,507

 
5,910

Loss (gain) on disposal of property and equipment, net
9

 
(218
)
Provision for loss on receivables
688

 
635

Provision for revenue adjustments
1,787

 
1,277

Deferred income tax expense
4,668

 
3,290

Changes in operating assets and liabilities
 
 
 
Accounts receivable
2,979

 
(3,922
)
Prepaid expenses and other current assets
312

 
(4,842
)
Income taxes
(341
)
 
(2,182
)
Accounts payable and accrued expenses
7,634

 
6,876

Net cash provided by operating activities of continuing operations
59,929

 
64,270

 
 
 
 
Investing activities:
 
 
 
Proceeds from disposal of property and equipment
988

 
1,008

Purchases of property and equipment
(14,214
)
 
(14,214
)
Acquisition of business, net of cash acquired
(55,931
)
 
(27,000
)
Net cash used in investing activities of continuing operations
(69,157
)
 
(40,206
)
 
 
 
 
Financing activities:
 
 
 
Payments of finance lease obligations
(676
)
 
(137
)
Proceeds from senior credit facility
65,000

 
10,000

Payments on earn-out liability
(5,284
)
 
—

Proceeds from exercise of stock options
—

 
1,278

Payments of cash dividends
(10,087
)
 
(10,333
)
Repurchase of common stock (repurchase program)
(15,259
)
 
(38,617
)
Proceeds from common stock issued under employee stock purchase plan
294

 
261

Cash settlement of share-based awards for tax withholdings
(3,286
)
 
(2,770
)
(Distributions to) contributions from subsidiary
(5,307
)
 
5,374

Net cash provided by (used in) financing activities from continuing operations
25,395

 
(34,944
)
Net increase (decrease) in cash of continuing operations
16,167

 
(10,880
)
 
 
 
 
Cash from discontinued operations:
 
 
 
Cash (used in) provided by operating activities of discontinued operations, net
(4,672
)
 
7,494

Cash used in investing activities of discontinued operations, net
(635
)
 
(2,120
)
Cash provided by (used in) financing activities of discontinued operations, net
5,307

 
(5,374
)
Net increase (decrease) in cash
16,167

 
(10,880
)
Cash at beginning of period of continuing operations
64,749

 
25,657

Cash at beginning of period of discontinued operations/held for sale
—

 
—

Net increase (decrease) in cash
16,167

 
(10,880
)
Less: cash at end of period of discontinued operations/held for sale
—

 
—

Cash at end of period of continuing operations
$
80,916

 
$
14,777


9

Forward Air Corporation Reconciliation of U.S. GAAP and Non-GAAP Financial Measures

The Company reports its financial results in accordance with GAAP (also referred to herein as “reported”). However, the Company also uses “Non-GAAP financial measures” that are derived on the basis of methodologies other than in accordance with GAAP. Specifically, the Company believes that meaningful analysis of its financial performance requires an understanding of the factors underlying that performance, including an understanding of items that are non-operational. Management uses these non-GAAP financial measures in making financial, operating, compensation and planning decisions and in evaluating the Company’s performance.

For the three and six months ended June 30, 2020 and 2019, this press release contains the following non-GAAP financial measures: earnings before interest, taxes, depreciation and amortization (“EBITDA”) and free cash flow. All non-GAAP financial measures are presented on a continuing operations basis.

The Company believes that EBITDA from continuing operations improves comparability from period to period by removing the impact of its capital structure (interest and financing expenses), asset base (depreciation and amortization) and tax impacts as set out in the below tables. The Company believes that free cash flow from continuing operations is an important measure of its ability to repay maturing debt or fund other uses of capital that it believes will enhance stockholder value.

Non-GAAP financial measures should be viewed in addition to, and not as an alternative for, the Company’s reported results prepared in accordance with GAAP. Non-GAAP financial information does not represent a comprehensive basis of accounting. As required by the Securities and Exchange Act of 1933 and the rules and regulations promulgated thereunder, the tables below present, for the periods indicated, a reconciliation of the Company's presented non-GAAP financial measures to the most directly comparable GAAP financial measures.
Forward Air Corporation
Reconciliation to U.S. GAAP
(In thousands)
(Unaudited)
 
 
 
 
 
 
 
 
 
Three months ended
 
Six months ended
Continuing Operations
June 30,
2020
 
June 30,
2019
 
June 30,
2020
 
June 30,
2019
Net income (GAAP)
$
9,225

 
$
21,244

 
$
20,641

 
$
38,931

Interest expense
1,198

 
581

 
2,051

 
1,156

Income tax expense
3,491

 
7,244

 
6,995

 
12,683

Depreciation and amortization
9,413

 
9,227

 
18,747

 
18,515

EBITDA (Non-GAAP)
$
23,327

 
$
38,296

 
$
48,434

 
$
71,285

 
 
 
 
 
 
 
 
 
Three months ended
 
Six months ended
Continuing Operations
June 30,
2020
 
June 30,
2019
 
June 30,
2020
 
June 30,
2019
Net cash provided by operating activities (GAAP)
$
29,101

 
$
25,715

 
$
59,929

 
$
64,270

Proceeds from disposal of property and equipment
268

 
624

 
988

 
1,008

Purchases of property and equipment
(11,563
)
 
(11,903
)
 
(14,214
)
 
(14,214
)
Free cash flow (Non-GAAP)
$
17,806

 
$
14,436

 
$
46,703

 
$
51,064


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The following table summarizes supplemental guidance information that management believes to be useful.

Forward Air Corporation
Additional Guidance Data
(In thousands, except per share data)
(Unaudited)
 
 
 
Three months ended
Actual - Continuing Operations
June 30, 2020
Net income from continuing operations
$
9,225

Income allocated to participating securities
(13
)
Numerator for diluted income per share - net income
$
9,212

 
 
Fully diluted share count
27,726

Diluted earnings per share from continuing operations
$
0.33

 
 
Projected
Full year 2020
Projected continuing operations and consolidated tax rate
26.5
%
 
 
Projected capital expenditures, net
$
26,000

 
 
Projected
December 31, 2020
Projected year-end fully diluted share count
27,500



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Note Regarding Forward-Looking Statements

This press release contains “forward-looking statements” within the meaning of the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. Forward-looking statements can be identified by words such as: “anticipate,” “intend,” “plan,” “goal,” “seek,” “believe,” “project,” “estimate,” “expect,” “strategy,” “future,” “likely,” “may,” “should,” “will” and similar references to future periods. Forward-looking statements included in this press release relate to expected impact of COVID-19, full year 2020 projected tax rate, share count, capital expenditures and the declaration of dividends.

Forward-looking statements are neither historical facts nor assurances of future performance. Instead, they are based only on our current beliefs, expectations and assumptions regarding the future of our business, future plans and strategies, projections, anticipated events and trends, the economy and other future conditions. Because forward looking statements relate to the future, they are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict and many of which are outside of our control. Our actual results and financial condition may differ materially from those indicated in the forward-looking statements. Therefore, you should not rely on any of these forward-looking statements. The following is a list of factors, among others, that could cause actual results to differ materially from those contemplated by the forward-looking statements: prolonged impact of COVID-19 and actions taken to mitigate those impacts, economic factors such as recessions, inflation, higher interest rates and downturns in customer business cycles, the creditworthiness of our customers and their ability to pay for services rendered, more limited liquidity than expected which limits our ability to make key investments, the availability and compensation of qualified independent owner-operators and freight handlers as well as contracted, third-party carriers needed to serve our customers’ transportation needs, the inability of our information systems to handle an increased volume of freight moving through our network, changes in fuel prices, our inability to maintain our historical growth rate because of a decreased volume of freight or decreased average revenue per pound of freight moving through our network, loss of a major customer, increasing competition and pricing pressure, our ability to secure terminal facilities in desirable locations at reasonable rates, our inability to successfully integrate acquisitions, claims for property damage, personal injuries or workers’ compensation, enforcement of and changes in governmental regulations, environmental and tax matters, insurance matters, the handling of hazardous materials and the risks described in our Annual Report on Form 10-K for the year ended December 31, 2019.

Any forward-looking statement made by us in this press release is based only on information currently available to us and speaks only as of the date on which it is made. We undertake no obligation to publicly update any forward-looking statement, whether written or oral, that may be made from time to time, whether as a result of new information, future developments or otherwise.

SOURCE: Forward Air Corporation

Forward Air Corporation
Michael J. Morris, 404-362-8933
mmorris@forwardair.com


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